RATING ACTION:
On March 12, 2024, CariCRIS reaffirmed the Issuer/Corporate Credit ratings CariBBB+ (Foreign Currency Rating) and CariA- (Local Currency Rating) on its regional rating scale and jmA+ (Foreign Currency Rating) and jmAA- (Local Currency Rating) on its Jamaica national scale to The Jamaica National Group Limited (or the Holding Company). The outlook was revised to negative from stable.
RATING SENSITIVITY FACTORS:
Factors that could, individually or collectively, lead to an improvement in the ratings and/or outlook include:
• Expansion of the Group’s product and service offerings and/or improvements in operating efficiencies, leading to a sustained PAT for 2 years
• Improvement in the credit rating of the Government of Jamaica, leading to an improved sovereign risk profile
• Improvement in the Group’s cost-to-income ratio to 65% or below for at least 2 consecutive years
• Improvement in the Group’s NPLs to gross loans to below 2.8%
• Improvement in the Group’s TNW to total adjusted assets to 20% or above
Factors that could, individually or collectively, lead to a lowering of the ratings and/or outlook include:
• A greater than 10% decline in the Group’s total income for 2 consecutive years
• Deterioration in the credit rating of the Government of Jamaica, leading to a worsened sovereign risk profile
• Deterioration in the Group’s TNW to total adjusted assets to 8% or below
• Deterioration of any of the Group’s subsidiaries’ capital adequacy ratios below regulatory requirements
• Deterioration in the Group’s cost-to-income ratio to 100% or above
• An increase in the Company’s gearing ratio to above 3 times
• The Group’s NPL ratio remaining above 4.5% over the next year
Analysts’ Contact Info:
Keith Hamlet
Mobile: 1-868-487-8356
[email protected]
Maxwell Gooding
[email protected]
www.caricris.com
[email protected]
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